putting an offer in on a house - the waiting game

[SilverSaloon]

Hi

we are currently putting in an offer on a house - this is our 3rd (and stated final offer) to the vendors who have rejected our 2 previous low offers.

This offer is still low compared to what they are asking for the house, however we are in a position to proceed straight away since we are renting, so no chains. the house we are trying to buy is currently empty and no chain there either (relative has passed away and estate is selling)

We submitted this final offer on wednesday midday. I'm not keen to contact vendors again as it makes us appear overly keen but would like to put a bit of pressure on as i dont want to have to go through the weekend with no response as we have other properties to view etc.

should i contact the vendors thisafternoon if we still havnt heard back and state our offer is only valid until friday midday, or should i just leave it?

when i say 'I' i mean my solicitor and 'vendor' their estate agent.

 

[wemorgan]

I'd continue viewing other properties.

Also, if it really is your final offer then there's no harm in asking for a response sooner rather than later.

Good luck.

 

[SilverSaloon]

I'd continuing viewing other properties.

Also, if it really is your final offer then there's no harm in asking for a response sooner rather than later.

Good luck.

the house is quite unique (which we like) and in our ideal location. Therefore we are pretty keen (been looking for a year or so).

the current offer we have submitted is what we believe its true value is in its current condition (its a wreck - 1800's house not updated since maybe '60s)

we do have more money to play with but if we increase our offer anymore it will be simply because we want the house for various reasons rather than its value. basically anything we pay over our current offer we will not get back if we were to sell on later (which we dont plan on though).

 

[Rob77]

I'd just leave the offer sitting there whilst continuing to view other properties. As for what it's worth, I've seen many a wreck go for good money. Lots of people like the idea that they will be making it look exactly as they want.

Also, a house isn't a car. I'd buy something I liked and could afford. Leave worrying about resale values to the property developers (most of whom are by now bust or involved in some other get-rich-quick scheme).

 

[GordonTarling]

Be patient is my advice. If the house is being sold by the estate and there's more than one person/relative involved, it can take a while to contact all concerned. We were in a similar position a year or so ago and it took best part of a week to get a reply to our offer.

 

[Charles Morgan]

I know all of these things are a pita, but let them take their time - they could have rejected it instantly but may need to think hard if it is lower than they would like. So the fact you are in the game is a good thing, so hang on patiently.

 

[mattc]

Being the cynic that I am are you certain your offers have got through to the sellers (not just your/their agents?). You would not be the first to learn there is a nice little stitch up going on

 

[SilverSaloon]

You could be right about the number of people involved - they rejected my 1st offer (expected) the same day. The 2nd offer went over till the next day so i presume they either couldnt contact everyone to decide or they were atleast thinking about it.

I am hoping that the reason they are taking so long is that they are giving it proper consideration. Our offer is on the low side but i've given them my reasons and they must know that their asking price is some-what optimistic in its current state.

House has been empty for about a year apparently and has been on sale for 6 months, having sold recently for more than we have offered but the buyers backed out, then about 2 weeks later we have put in our offer.

We also like the fact its knackered as we want to make the property "our own" after living in a brand new house and an older house but already done, so apart from a few things we didnt change too much as couldnt justify it. the attraction is that its knackred as it means we can start afresh without thinking "well i could live with that" etc. I'm hoping to do a lot of the work myself (where skills and time allow) and it will be a bit of a project.

Mattc - re the stitch up - not 100% sure what you mean, but i do trust my solicitor since we've used him before and put offers in on other properties, seems on the ball. As for the agent, who knows, but feedback from the 1st offer was basically they liked that we had no chain, and admit there is lots of work required but the offer is too low, so i assume they are for real....

 

[SilverSaloon]

well they got back to me thisafternoon. Offer rejected saying its no where near the asking price. yeah, i'd already explained reasons behind that Strangely they still refuse to inform me what they would accept. not very good negotiating! It appears we are a million miles apart on the price, but who knows unless they tell me - the asking price is obviously unrealistic.

told them my offer remains until end of tommorow but i'm not increasing it. its worth what its worth. We'll find somewhere else/better in time i'm sure.

Very frustrating but it appears we are dealing with greedy, deluded sellers.

 

[Charles Morgan]

Leave them - if they are hung up on an unachievable price, there is little you can do, and you are best served by walking away, as you have already made an offer you don't really want to increase.

 

[Harrythedog]

Tell them you've had an offer accepted on another property but would prefer this one (the one your talking about) and ask them to confirm that your final offer is rejected.

 

[artyman]

The fact that they had a previous buyer at a higher price than your offer will no doubt convince them that they can get that price or close to it, so depends on how much the difference is and also how much you want it and are prepared to pay. Much the same as buying a car, you reach a price you are happy to by at or look for something else. If you keep going back with increased offers they will realise that you are keen to purchase and you lose the buyers initiative, and also how deperate are they to sell, it's all about the game

 

[DITTRICH]

You have already bid 3 times so they know you are very interested. They aren't under any time pressure, it appears and are waiting for you to cave in and offer a higher amount. I'd move on and write it off. If they have unrealistic expectations, it may take them ages to adjust - far longer than you have. I assume you have researched similar property sale prices in the area using land registry data? and similar properties in the area on the market?

 

[SilverSaloon]

our offer was 77% of asking price, according to a 'little bird' the offer they took before that fell through was at 88%, but they backed out didnt they.

its very frustrating also going via the solicitor. i have various reasons for offering the low price, one of which is plans submitted to the council in Nov for an extension of a shopping complex next door, which will have an effect on value. these plans are in "pre-application" currently. I told my solictor to mention it but whether he did or explained it properly who knows.

The house is quite unique (land, outbuildings etc) compared to other houses around, which are mainly either new-builds or standard houses etc so no real history to go on. current owner there for 50 years. The brand new houses nearby (3, 4 bed detached) sell for less than the asking price of this knackered one.

Issue I have is we want to stay in the area we are in (for kids school mainly and commute to work) but still want this style of property so its quite a rare find really, and hence only found 1 other in the year we have been looking. (which we almost got until the seller changed his mind last minute and rented it out to a mate instead)

 

[Dryce]

I wouldn't assume any logic.

We've had friends trying to buy in central Scotland where the properties have been reasonably unique and in two cases before they finally bought the owners were refusing reasonably sensible offers. In one case I think it was just bull headedness with the owner wanting to hold out for something close to the valuations of a few years ago. In the other I suspect it was down to a dispute between siblings who were disposing of the house as part of an inherited estate as to what the value should be and the house needed some work as well. In that second case two offers were made and then a month or so later the sellers came back to make a counter offer which wasn't that far above the second offer but by that time the buyers had sorted themselves out and bought something.

The market is a bit unbalanced at the moment. Run of the mill stuff can be dead while quite pricey unique stuff shifts within a few hours or days of coming to market.

Given that the property you're after has been on the market for a while you might simply wait a few days put a number in a brown envelope (real or imaginary) - ask them to state their best final price with a reasonable deadline - and if there is no response or the price asked is higher than the number in your real or imaginary envelope you'll walk away without looking back.

 

[developer]

(most of whom are by now bust or involved in some other get-rich-quick scheme).

:d

 

[trapperjohn]

Your offer price is only 10% different to the alleged selling price of 88%. Up your offer by 5% see how that goes.
Or if there is nothing in the area of similar stature with land and outbuildings match the 88%.

Stop being a tight wad and get on with your life Living rented is costing you money every month. Probably more that the 10% difference between where you are now and getting the home with land and outbuildings you would love. You could be in for early spring with a full summer to go at the renovations.

Why do you want to live next to a shopping complex? Trucks unloading in the early dawn. OK now but perhaps not in the future.

We know each other Derek. Non intended - Life is too short mate get on with it.

 

[Piff]

Hmmm
I lost a unique property several years ago. Asking price was IIRC £95K. I offered what I could afford based on the cost of conversion (was an old police house with police station & cells attached) IIRC I offered £83K. Vendor (county council) rejected and would not discuss what they would accept. I later found out that it sold for £85k.
I regretted not persisting.

Current abode was offered to me before it went on the market by son of elderly lady. I knew the property and was aware they were expecting around £180k. Viewed immediately and offered £175k. I was then told they had instructed estate agent that day at £185k. If I wanted it I had to agree to that price.
In my opinion at that time the correct price was between my first offer & £180k. However location was unique so agreed to full price. Old lady promptly died & her estate went to probate with a bank as executors.
They wouldn't allow estate agent to remove house from market incase any higher offers received while in probate. Had to shift the old house pretty quick by pitching price slightly lower than other houses on the street. So paid over the top and took less for the old place.
Spent approx £50 - £55k on it and have now sold for £355k. Not bad in 6 years (4 of which have been a recession.

My point - if it realy is unique and ticks all your boxes then it's worth paying for.

Little known point - how long has the place been unoccupied? If it is 2 years & you can prove it, any building works to bring it back into use can be charged at 5% instead of the usual 20%. Depending how much you are spending on it, may be worth leaving it empty for a bit longer.

 

[developer]

My point - if it realy is unique and ticks all your boxes then it's worth paying for.

(within reason).

I'd bounce you all day long at 77%.

Think yourself lucky it's not gone to sealed bid - it's a horrible process if your heart is ruling your head.

 

[BTB 500]

As cash buyers with no chain we had two offers turned down on a house we liked when we were looking 6 years ago. Walked away, found somewhere even better which is where we were now. Saw on the web that the original house sold in the end for less than we had offered